Terms Flashcards
What is a pre-contractual statement?
A statement made during negotiations before a contract is formed
What is a term in a contract?
A legally binding part of the contract
What is a representation?
A statement made to persuade but not legally binding.
What is a mere puff?
A promotional statement not meant to be taken seriously.
What case involved a mere puff?
Dimmock v Hallett (land described as “fertile and improvable”).
What case showed that a serious statement could be a term?
Carlill v Carbolic Smoke Ball (money deposit made promise enforceable).
How does importance affect whether a statement is a term?
.
If a statement is crucial to the contract, it is more likely to be a term.
What case showed importance of a statement making it a term?
Couchman v Hill (buyer relied on assurance that a heifer was unserved).
How does special knowledge affect whether a statement is a term?
If made by an expert, it is more likely to be a term
What case showed that specialist knowledge made a statement a term?
Dick Bentley v Harold Smith (car dealer’s mileage statement was binding)
How does timing affect whether a statement is a term?
The longer the gap between statement and contract, the less likely it is a term.
What case showed a delay meant a statement was not a term?
Routledge v McKay (statement about motorbike’s age made a week before sale).
How does verification affect whether a statement is a term?
If the seller suggests checking, it is less likely to be a term
. What case showed that suggesting verification made a statement a representation?
Ecay v Godfrey (seller advised buyer to survey a boat).
How does written inclusion affect whether a statement is a term?
If not included in writing, courts assume it was not intended as a term.
What case showed that omission from a written contract meant a statement was not a term?
Routledge v McKay (contract made no mention of motorcycle’s age).
How does notice to the other party affect whether a statement is a term?
A term must be properly communicated before the contract is formed
What case showed a term must be communicated at the right time?
Olley v Marlborough Court Hotel (hotel notice after check-in was ineffective).
. What is an express term?
A term clearly stated in the contract, either written or verbal.
What is an implied term?
A term not stated but included by law, courts, or custom.
How can a term be implied by law?
If required for policy reasons in specific contract types.
. What case showed a term implied by law?
Liverpool CC v Irwin (implied landlord obligations in a tenancy).
How can a term be implied for business efficacy?
If necessary for the contract to function properly.
What case established the business efficacy test?
he Moorcock (mooring contract implied safe docking conditions
What is the officious bystander test?
A term is implied if it is so obvious that both parties would agree to it.
What case established the officious bystander test?
Shirlaw v Southern Foundries
How can a term be implied by custom?
If it is a known and accepted trade practice.
What case showed a term implied by custom?
-Hutton v Warren (tenant entitled to reimbursement for farming costs).
What contracts does the CRA 2015 apply to?
Contracts between consumers and traders.
What is a consumer under the CRA 2015?
An individual acting for personal, not business, purposes.
. What is a trader under the CRA 2015?
A person or business acting for commercial purposes.
. What term is implied under S.9 of the CRA 2015?
Goods must be of satisfactory quality.
What term is implied under S.10 of the CRA 2015?
. Goods must be fit for a particular purpose.
What term is implied under S.11 of the CRA 2015?
Goods must match their description.
What is the remedy under S.20 of the CRA 2015?
Short-term right to reject goods within 30 days.
What is the remedy under S.23 of the CRA 2015?
Right to repair or replacement
What is the remedy under S.24 of the CRA 2015?
. Right to a price reduction or final rejection.
What is a condition in contract law?
A fundamental term; breach allows termination and damages.
What case showed a breach of condition?
Poussard v Spiers (actress missing key performances
What is a warranty in contract law?
A minor term; breach allows only damages, not termination.
What case showed a breach of warranty
Bettini v Gye (singer missing rehearsals).
What is an innominate term?
A term that could be a condition or warranty depending on the breach.
What case established innominate terms?
Hong Kong Fir Shipping (engine failure did not allow termination).
How can conditions and warranties be defined?
By statute
By the parties
By the courts
What statute defines certain terms as conditions?
The Consumer Rights Act 2015
What case showed that parties can specify a term as a condition?
Lombard v Butterworth (timely payment was “of the essence”).
What case showed the court can override a party’s classification of a term?
Schuler v Wickham (impractical visit requirements classified as a warranty).
